X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Celestica Inc., a Toronto-based contract electronics manufacturer, plans to move its printed circuit board operations to a new 200,000 sf facility. The Rochester,MN site will be financed and owned by an affiliate of W.P.Carey, the New York real estate company.

Celestica is the latest among several recent transactions that W. P. Carey has completed for companies serving the Electronics Manufacturing Services (EMS) market, says W. Sean Sovak, executive director at W. P. Carey

The Celestica facility, which will be built by Minneapolis-based M.A. Mortenson, will consist of 200,000 square feet of office and manufacturing space on 30 acres about a half mile from the IBM’s Rochester campus. It replaces temporary quarters Celestica has occupied since buying the operation from IBM early this year.

Celestica will lease the $21.6 million building from Corporate Property Associates 14 Inc., an real estate investment trust affiliate of New York-based W.P.Carey Group, a $2.5 billion New York-based commercial real estate firm specializing in corporate properties.

The new facility will allow Celestica to expand its business by 20 to 30 percent, as well as sell to customers besides IBM, its only customer so far, says Gary Moore, general manager of Celestica’s Rochester operation.“We’re looking forward to diversifying our business,” says Moore. “It doesn’t make sense for a business like ours to have our assets tied up in real estate.”

IBM has in recent years sold off a variety of other printed circuit board factories in Austin, Texas,Charlotte, N.C., Greenock, Scotland and Bordeaux,France.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE 2020Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.